The Pella School Board reviewed an early retirement policy in their first work session of the new academic year Monday.
They discussed what the potential new program will look like, which staff is eligible, and the financial impact on the general fund and management fund with an impending budget shortfall in the upcoming fiscal year.
The district could save an average of $350,000 annually in general fund spending authority by replacing retiring teachers with staff at the beginning of the salary schedule, likely saving programs at the expense of years of experience and increased management fund spending. The school tax rate will be maintained for three years, and not drop as fast as it would have before, if 11 teachers accept the agreement.
Pella last had an early retirement incentive in 2015-16, with 27 staff members accepting an early-retirement agreement to help save the district money. However, this time, the board is considering limiting the number of people who will be accepted out of 25 total teachers eligible, as they have less to cut over the next three years.
“Retirement didn’t get us there last time [in 2016],” Superintendent Greg Ebeling said. “We had another $250,000 to cut then.”
Ebeling says he expects less than a dozen teachers will accept the incentive, with 11 accepting as the target to help the school district reach their savings goal. The board will vote to approve retirees on a month-to-month basis over through December, and consider numerous factors when determining how many retirees they accept.
“The last time we did it, we lost a lot of depth and a lot of talent,[…]and you can’t put a dollar sign on that,” Tim Tripp said. “I don’t like that we are doing this.”
Ebeling said preschool numbers are up, as is open enrollment, which will help the district financially, but says low supplement state aid increases is the cause for the creation of the policy. Ebeling also described a positive climate in the Pella community for growth overall, which will in turn, mean growth for the district, and this round of early retirement may save the district cuts for three to five years.
In other business, the board tabled further action on the district’s policy for gifts, grants, and bequests as it relates to Title IX, after concerns about the language and how it would impact programs and concerns about equity among different programs if a large donation comes in for certain teams. They approved a lease agreement with Shoot-It Basketball Academy, and an update to a tax increment financing document for the Southwest Urban Renewal Area housing developments.